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You have R500 000 available to invest. The risk-free rate, as well as your borrowing rate, is 8%. The return on the risky portfolio is

You have R500 000 available to invest. The risk-free rate, as well as your borrowing rate, is 8%. The return on the risky portfolio is 16%. If you wish to earn a 22% return, you should ________. a. invest R375,000 in the risk-free asset b. short sell R125,000 c. short sell R375,000 d. invest R125,000 in the risk-free asset e. invest R500 000 in the risk-free asset

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